The President and CEO of Canada-based Nemaska Lithium stepped down on 20 February. The company field for bankruptcy protection in December 2019.
Under the Companies’ Creditors Arrangement Act (CCAA), Nemaska will restructure and seek additional financing, sell assets or enter of joint venture. The sale and investor solicitation process (SISP) procedures will commence on 28 February 2020.
Earlier in 2019, Nemaska had raised the estimated investment needed for its Whabouchi project (a combination of an open-pit and underground mine) to $1.5 billion from $1.1 billion. (Earlier post.) Prices for lithium have been falling steadily due to oversupply from mine expansions and a fall off in EV purchases due to a cut in government subsidies for Evs in China.
Nemaska intended to operate the Whabouchi mine in Québec, Canada, one of the richest lithium spodumene deposits in the world, both in volume and grade. The produced spodumene concentrate would thereafter be processed at the Shawinigan plant using a unique membrane electrolysis process for which Nemaska holds several patents.